10x Genomics Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Outlook for 2024
- Revenue growth of 18% in Q4 2023 and 20% in FY 2023 compared to 2022.
- Increased cumulative instruments sold to 5,966 by the end of 2023.
- Launched preorders for new products and technologies.
- Gross margin decreased due to product mix with a higher mix of Spatial instruments sold.
- Operating expenses increased by 20% driven by in-process research and development expenses.
- Net loss increased in Q4 2023 and FY 2023 compared to the prior year.
- Provided a positive outlook for 2024 with revenue expected to grow by 8% to 12%.
- Cash and cash equivalents and marketable securities were $388.7 million as of December 31, 2023.
- None.
Insights
The reported revenue growth of 18% for Q4 and 20% for the full year signifies a robust performance by 10x Genomics, especially in the context of the life sciences tools and diagnostics sector. This growth trajectory, coupled with the expanded instrument portfolio, suggests the company is gaining market share and effectively capitalizing on the demand for single cell and spatial biology technologies. However, the decline in gross margin, primarily due to a higher mix of Spatial instruments sold, indicates a shift in the company's sales mix towards potentially lower-margin products, which could impact profitability in the short term.
Additionally, the increase in operating expenses, notably due to in-process research and development and impairment charges, reflects aggressive investment in innovation and potential expansion of capabilities. While this could strain current financials, leading to a larger operating loss, it may position the company for long-term growth if the new products and technologies capture significant market interest. Investors should monitor the balance between growth investments and cost management moving forward.
The launch of new products such as Visium HD Spatial Gene Expression and Chromium GEM-X technology is a strategic move to stay ahead in the competitive landscape of life sciences research. The increased cumulative instruments sold demonstrates market acceptance and the potential for recurring revenue through consumables, which is a key driver for sustainable growth in this sector. However, the company's outlook for 2024 projects a slower revenue growth rate of 8% to 12%, which could signal a maturing market or increased competition.
It is crucial to analyze the adoption rate of the newly launched products and the company's ability to maintain its innovation lead. The operating loss and net loss figures are significant, but not uncommon for companies in growth phases within biotechnology. Stakeholders should weigh the potential future returns of current R&D investments against the risks of prolonged periods of losses.
The single cell and spatial biology fields are rapidly evolving, with significant implications for research and clinical applications. 10x Genomics' focus on these areas, as evidenced by their new product launches and technology advancements, is aligned with the industry's trajectory towards more precise and high-resolution biological analysis. The company's investment in R&D, despite leading to short-term losses, is critical for maintaining a competitive edge in a field where technological obsolescence can occur quickly.
The acquisition of intangible and other assets suggests strategic moves to enhance their technological portfolio, which could lead to new revenue streams or improvements in existing products. However, the market will need to assess whether these investments will translate into commercial success that justifies the current financial impact.
Q4 2023 revenue growth of
Recent Highlights
- Revenue was
$184.0 million $618.7 million 18% and20% increases over the corresponding periods of 2022. - Increased cumulative instruments sold to 5,966 as of the end of 2023, comprising 5,180 Chromium instruments, 531 Visium instruments and 255 Xenium instruments.
- Launched preorders for Visium HD Spatial Gene Expression, enabling whole transcriptome spatial discovery at single cell-scale resolution.
- Unveiled and launched preorders for the first two products featuring Chromium GEM-X technology, the next generation of the company's leading single cell technology architecture, enabling higher performance at larger scale and lower cost.
"Our innovation engine has consistently delivered transformational technologies that have enabled our customers to expand the frontiers of science," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "We're building on last year's extraordinary launch of Xenium with new, franchise-defining products in each of our three platforms that will take our portfolio to the next level. Our priority is to ensure our customers' success with these new products as we work together to deliver on the full promise and potential of single cell and spatial biology to advance human health."
Fourth Quarter 2023 Financial Results
Revenue was
Gross margin was
Operating expenses were
Operating loss was
Net loss was
Full Year 2023 Financial Results
Revenue was
Gross margin was
Operating expenses were
Operating loss was
Net loss was
Cash and cash equivalents and marketable securities were
2024 Financial Guidance
10x Genomics expects full year 2024 revenue to be in the range of
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the fourth quarter and full year 2023 financial results, business developments and outlook after market close on Thursday, February 15, 2024 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay for at least 45 days after the event.
About 10x Genomics
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn or X (Twitter).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s product momentum, potential, progress and launches, our expected performance advantages and benefits of using our products and services, customer usage and adoption of our products and our financial performance and results of operations, including our expectations regarding revenue and guidance. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recently-filed 10-K and elsewhere in the documents 10x Genomics, Inc. files with the Securities and Exchange Commission from time to time.
Disclosure Information
10x Genomics uses filings with the Securities and Exchange Commission, our website (www.10xgenomics.com), press releases, public conference calls, public webcasts and our social media accounts as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
Contacts
Investors: investors@10xgenomics.com
Media: media@10xgenomics.com
10x Genomics, Inc. Consolidated Statement of Operations (Unaudited) (In thousands, except share and per share data) | |||||||
Three Months Ended | Year Ended | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenue (1) | $ 183,979 | $ 156,232 | $ 618,727 | $ 516,409 | |||
Cost of revenue (2) | 68,197 | 36,827 | 209,414 | 120,386 | |||
Gross profit | 115,782 | 119,405 | 409,313 | 396,023 | |||
Operating expenses: | |||||||
Research and development (2) | 65,267 | 63,614 | 270,332 | 265,667 | |||
In-process research and development | 19,578 | — | 60,980 | — | |||
Selling, general and administrative (2) | 86,125 | 78,887 | 343,330 | 298,300 | |||
Total operating expenses | 170,970 | 142,501 | 674,642 | 563,967 | |||
Loss from operations | (55,188) | (23,096) | (265,329) | (167,944) | |||
Other income (expense): | |||||||
Interest income | 4,637 | 2,815 | 16,906 | 6,647 | |||
Interest expense | (8) | (125) | (33) | (476) | |||
Other income (expense), net | 3,961 | 3,995 | (307) | (198) | |||
Total other income | 8,590 | 6,685 | 16,566 | 5,973 | |||
Loss before provision for income taxes | (46,598) | (16,411) | (248,763) | (161,971) | |||
Provision for income taxes | 2,354 | 804 | 6,336 | 4,029 | |||
Net loss | $ (48,952) | $ (17,215) | $ (255,099) | $ (166,000) | |||
Net loss per share, basic and diluted | $ (0.41) | $ (0.15) | $ (2.18) | $ (1.46) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 118,565,724 | 114,757,572 | 117,165,036 | 113,858,684 | |||
(1) | The following table represents revenue by source for the periods indicated (in thousands). Spatial products includes the Company's Visium and Xenium products: |
Three Months Ended | Twelve Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Instruments | ||||||||
Chromium | $ 11,150 | $ 15,243 | $ 47,866 | $ 58,552 | ||||
Spatial | 27,248 | 7,089 | 75,605 | 13,844 | ||||
Total instruments revenue | 38,398 | 22,332 | 123,471 | 72,396 | ||||
Consumables | ||||||||
Chromium | 118,144 | 120,238 | 420,316 | 400,433 | ||||
Spatial | 22,170 | 11,359 | 59,237 | 35,155 | ||||
Total consumables revenue | 140,314 | 131,597 | 479,553 | 435,588 | ||||
Services | 5,267 | 2,303 | 15,703 | 8,425 | ||||
Total revenue | $ 183,979 | $ 156,232 | $ 618,727 | $ 516,409 | ||||
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):
Three Months Ended | Twelve Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
$ 99,322 | $ 82,828 | $ 360,091 | $ 284,987 | |||||
4,520 | 2,794 | 13,101 | 8,791 | |||||
Total | 103,842 | 85,622 | 373,192 | 293,778 | ||||
50,589 | 43,001 | 142,276 | 117,068 | |||||
China¹ | 11,748 | 16,277 | 50,965 | 64,356 | ||||
17,800 | 11,332 | 52,294 | 41,207 | |||||
Total | 29,548 | 27,609 | 103,259 | 105,563 | ||||
Total Revenue | $ 183,979 | $ 156,232 | $ 618,727 | $ 516,409 | ||||
1 | Includes |
(2) Includes stock-based compensation expense as follows:
Three Months Ended | Year Ended | ||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||
Cost of revenue | $ 1,928 | $ 1,511 | $ 7,068 | $ 5,259 | |||
Research and development | 17,608 | 17,865 | 72,804 | 59,211 | |||
Selling, general and administrative | 19,382 | 21,598 | 87,078 | 72,378 | |||
Total stock-based compensation expense | $ 38,918 | $ 40,974 | $ 166,950 | $ 136,848 | |||
10x Genomics, Inc. Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share data) | |||
December 31, | |||
2023 | 2022 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 359,284 | $ 219,746 | |
Marketable securities | 29,411 | 210,238 | |
Restricted cash | — | 2,633 | |
Accounts receivable, net | 114,832 | 104,211 | |
Inventory | 73,706 | 81,629 | |
Prepaid expenses and other current assets | 18,789 | 16,578 | |
Total current assets | 596,022 | 635,035 | |
Property and equipment, net | 279,571 | 289,328 | |
Restricted cash | — | 4,974 | |
Operating lease right-of-use assets | 65,361 | 69,882 | |
Goodwill | 4,511 | 4,511 | |
Intangible assets, net | 16,616 | 22,858 | |
Other noncurrent assets | 3,062 | 2,392 | |
Total assets | $ 965,143 | $ 1,028,980 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 15,738 | $ 21,599 | |
Accrued compensation and related benefits | 30,105 | 32,675 | |
Accrued expenses and other current liabilities | 56,648 | 59,779 | |
Deferred revenue | 13,150 | 7,867 | |
Operating lease liabilities | 11,521 | 9,037 | |
Total current liabilities | 127,162 | 130,957 | |
Operating lease liabilities, noncurrent | 83,849 | 86,139 | |
Deferred revenue, noncurrent | 8,814 | 3,165 | |
Other noncurrent liabilities | 4,275 | 2,976 | |
Total liabilities | 224,100 | 223,237 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 2 | 2 | |
Additional paid-in capital | 2,025,890 | 1,839,397 | |
Accumulated deficit | (1,284,420) | (1,029,321) | |
Accumulated other comprehensive loss | (429) | (4,335) | |
Total stockholders' equity | 741,043 | 805,743 | |
Total liabilities and stockholders' equity | $ 965,143 | $ 1,028,980 | |
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SOURCE 10x Genomics, Inc
FAQ
What was 10x Genomics' revenue growth in Q4 2023 compared to 2022?
How many instruments did 10x Genomics sell by the end of 2023?
What new technology did 10x Genomics launch for spatial gene expression?
What is 10x Genomics' financial outlook for 2024?
